About a year after rejecting a $855 million takeover bid from plastic compounds and resins supplier A. Schulman, Ferro Corp. has agreed to sell substantially all of the assets in its specialty plastics business to A. Schulman for $91 million in cash.
Assets included in the transaction are Ferro's plastics manufacturing sites in Stryker, OH; Evansville and Plymouth, IN; Carpentersville, IL; and its plastics operations in Castellon, Spain. Specialty plastics assets not included in the sale are Ferro's liquid colorants and dispersions business in Edison, New Jersey, and its specialty plastics operations in Venezuela.
The company estimates that cash proceeds, net of cash taxes and fees, from the sale of the specialty plastics assets will be approximately $87 million, which it plans to use to reduce debt. The sale is subject to customary closing conditions, including consultation with workers' representatives. The transaction is expected to close early in the third quarter of 2014.